Financial Results for the First Quarter Ended January 31, 2015
[Japan GAAP] (Consolidated)
Date:

March 4, 2015

Company Name and Code:

Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)

Stock exchange listing:

1st Section, Tokyo Stock Exchange

Head Office:2-2, Osaki 1-chome, Shinagawa-ku, Tokyo, Japan

President:

Hitoshi Yamamoto

Investor Relations Contacts:

Toshiaki Yakura, Director, General Manager of Accounting Division, Tel: (03) 5435-6512

Date to report Quarterly Consolidated Financial Statement: March 16, 2015
Date for Dividend Payment:

Not applicable to financial quarters.

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Not prepared for financial quarters.
Briefing Session for Quarterly Operating Results: Not planned.
* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the First Quarter Ended January 31, 2015
(1) Results of Operation (Consolidated)

Quarter Ended January 31, 2015
Quarter Ended January 31, 2014

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions of
Yen
Percent
Yen
Percent
Yen
Percent
9,572
5.1
287
140.6
481
69.2
9,106
7.2
119
11.1
284
67.6
Net Income

Quarter Ended January 31, 2015
Quarter Ended January 31, 2014

Millions of
Yen
383
263

Percent
45.5
207.3

Net Income per Share

Fully Diluted Quarterly
Net Income per Share

Yen
38.43
26.41

Yen
-

(Note) Comprehensive income
First Quarter ended January 31, 2015: 615 million yen (39.5%)

First Quarter ended January 31, 2014: 441 million yen (27.0%)(2) Financial Condition (Consolidated)

Quarter Ended January 31, 2015
Year Ended October 31, 2014

Total Assets (A)(Millions of Yen)
34,52433,817

Net Assets (B)(Millions of Yen)
24,801
23,943

Net Assets Ratio(B) / (A) (Percent)
71.8
70.8

(Reference) Net assets
First Quarter ended January 31, 2015: 24,801 million yen

Year Ended October 31, 2014: 23,943 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2014
Year Ending October 31, 2015
Year Ending October 31, 2015 (Prospect)First
Quarter-InterimTerm
22.50

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
22.50

22.50

(Note) Revisions since the most recently released dividend projection: None

-

22.50

Annual45.00
45.00

3. Forecast for Earnings for the Year Ending October 31, 2015 (Consolidated)(Percent: 2nd Quarter YTD - change from the same quarter of the previous year;
Full Business Year - change from the previous Full Business Year)Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
2nd Quarter YTD
20,700
3.7
880
4.0
900
-12.2
Full Business Year
42,700
4.9
1,830
43.7
1,850
13.5
Net Income
Net Income per Share(Millions of Yen) (Percent)Yennd
2 Quarter YTD
670
-13.5
67.14
Full Business Year
1,150
4.3
115.25(Note) Revisions since the most recently released dividend projection: None
Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
Number of new subsidiaries: __(Company names):
Number of eliminated subsidiaries: __(Company names):(2) Adoption of simplified accounting method and the specific accounting method: None
(3) Changes of the principles, procedures, and representation of the accounting policies
1) Change due to revision of accounting standard: Existing2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
For more information, please refer to the supporting data on page 4, (3) Changes in accounting principles,changes in accounting estimates and retrospective restatements(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At January 31, 2015: 10,533,200 shares

At October 31, 2014: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At January 31, 2015: 554,667 shares

At October 31, 2014: 554,667 shares

3) Number of average shares (accumulated quarterly total)
At January 31, 2015: 9,978,533 shares

At January 31, 2014: 9,978,608 shares*Disclosure concerning status of implementation of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial Instruments
and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has not completed aquarterly review procedure based on the Financial Instruments and Exchange Act.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could
differ materially due to various factors. Please refer to the Financial Results for the Quarter (Attachments) on page 3,(3) [Analysis of Future Forecast on Consolidated Earnings Forecast] of 1. [Qualitative Information on Quarterly
Consolidated Operating Results] for the operating results forecast.

Table of Contents (Supporting Data)

1. Qualitative Information on Quarterly Consolidated Operating Results...................................................................2(1) Analysis of Operating Results................................................................................................................................2(2) Analysis of Financial Condition..............................................................................................................................3(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast.......................................................3
2. Matters Concerning Summary Information (Note)...........................................................................................4(1) Changes to material subsidiaries during the quarterly consolidated period under review.......................4(2) Application of special accounting method in the preparation of quarterly consolidated financial
statements......................................................................................................................................4(3) Changes in accounting principles, changes in accounting estimates and retrospective restatements...4
3. Quarterly Consolidated Financial Statement...........................................................................................................5(1) Quarterly Consolidated Balance Sheet. ................................................................................................5(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
Income......................................................................................................................................7
Quarterly Consolidated Statements of Income.....................................................................................................7
Quarterly Consolidated Statements of Comprehensive Income.........................................................................8(3) Notes for Quarterly Consolidated Financial Statements………………………………………………..9(Note for premise of going concern)……………………………………………………………...9(Notes for significant changes in shareholder’s equity)…………………………………………...9(Segment information) ………………………………………………………………………………...9
4. Overseas Net Sales (Supplemental Information)...................................................................................................10

1

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the first quarter, Japan’s economy maintained a gradual recovery trend that was driven by several factors,
including an expansion of exports that accompanied the overseas economic recovery, particularly in the UnitedStates, a rising trend in capital investment supported by strong corporate earnings, and an upswing in personal
consumption against the backdrop of an improved household income and employment environment.
Nevertheless, even as the U.S. economy maintained its recovery trend, conditions overseas that made it impossible
to banish concerns of an economic slowdown lingered. In addition to the weakness in growth evident in theeconomies of newly developing countries including China, negative factors included the adverse effects of a slump
in crude oil prices and the Greek debt problem in Europe.
Given these circumstances, in the Machinery & Equipment Business net sales of machinery, components and repair
services for domestic private sector demand were lower, but net sales of machinery, components and repair
services for overseas expanded, centered on North America, and net sales of equipment and works, components
and repair services for domestic public sector demand remained steady. In the Chemical Products Business, net
sales for the domestic plastics sector and fine chemicals sector lacked strength, but net sales in the industrial
materials sector and electronics materials sector, as well as of products such as commodity plastics in Hong Kong,
all remained strong. In terms of earnings during the period, profits were lower in the Chemical Products Business,
primarily because of the deterioration in earning in the resin plastic compounding business in Shenzhen, China, but
profits overall increased, mainly because of higher earnings in the Machinery & Equipment Business.
As a result of the above, net sales for the Tomoe Engineering Group for the consolidated first quarter rose 5.1% fromthe same period last year to 9,572 million yen. Operating income was 287 million yen, 140.6% up from the same
period of the prior year, ordinary income was 481 million yen, 69.2% up from the same period of the prior year, andnet income was 383 million yen, 45.5% up from the same period one year earlier.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, consolidated net sales for the year-to-date period were 1,948 million yen,
26.2% up from the same period last year. Net sales of machinery and components and repair services fordomestic private sector demand were lower, but net sales of machinery and components and repair services foroverseas markets centered on North America increased, and net sales of machinery and works and components
and repair services for domestic public sector demand remained steady. From an earnings aspect, because net
sales for the entire business were pushed higher by the growth in net sales of machinery and component and repair
services for overseas markets, particularly in North America, operating income recovered from the operating loss of
137 million yen reported in the same period one year ago and came to 56 million yen.
(Chemical Products Business)
In the Chemical Products Business, sales in the plastics sector of high performance resins, and sales in the finechemicals sector of commercial products for paints and adhesives and sales of products such as drug-relatedmaterials decreased. On the other hand, sales in the industrial materials sector for housing and construction
applications, sales in the electronics materials sector of transport trays for semiconductor manufacturing applications,and sales of commodity plastics in Hong Kong remained strong. As a result, consolidated net sales for the
year-to-date period were 7,623 million yen, 0.8% up from the same period one year ago.
With respect to earnings during the period, operating income was 230 million yen, 10.4% down from the same
period one year earlier. Factors behind this performance included the impact from lower sales in the plastics sector
and fine chemicals sector, and a contraction in profits in the plastic compounding business in Shenzhen, China thatreflected a decrease in sales.
2(2) Analysis of Financial Condition
Total assets as of the end of the consolidated first quarter under review were 34,524 million yen, up 2.1% or 706
million yen from the end of the previous consolidated fiscal year. This mainly reflected a reduction of 1,261 million
yen in cash and deposits because of payments of bonus, corporate tax and dividend, among other changes, andan increase of 941 million yen in inventory, and an increase of 739 million yen in asset for retirement benefits.
Liabilities were 9,722 million yen, down 1.5% or 151 million yen from the end of the previous consolidated fiscal year,
mainly because of a decrease of 502 million yen in income tax payable, a decrease of 392 million yen in provision
for bonuses, and an increase of 619 million yen in notes and accounts payable-trade.
Net assets stood at 24,801 million yen, 857 million yen or 3.6% up from the end of the previous consolidated fiscal
year. This mainly reflected an increase of 625 million yen in retained earnings and a 173 million yen increase in thetranslation adjustments account.
As a result of the above changes, the equity ratio at the end of the consolidated first quarter under review roseby 1.0 point compared with the end of the previous consolidated fiscal year to 71.8%.
(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast
There are no revisions to the consolidated earnings forecast figures for the fiscal year ending in October 31, 2015that were announced in the “Financial Results for the Fiscal Year Ended October 31, 2014 [Japan GAAP](Consolidated)” released on December 11, 2014.

3

2. Matters Concerning Summary Information (Other)(1) Changes to material subsidiaries during the quarterly consolidated period under review:
There are no pertinent matters to report.
(2) Application of special accounting method in the preparation of quarterly consolidated financial statements:
There are no pertinent matters to report.
(3) Changes in accounting principles, changes in accounting estimates and retrospective restatements:(Application of the Accounting Standard for Retirement Benefits)
Beginning from the first quarter consolidated accounting period, the Company has applied the AccountingStandard for Retirement Benefits (Accounting Standards Board of Japan (ASBJ) Statement No. 26, referred to below
as “the Retirement Benefit Accounting Standard”) and the Implementation Guidance on Accounting Standard for
Retirement Benefits (ASBJ Guidance No. 25, referred to below as “the Retirement Benefits Implementation
Guidance”) under the provisions in the main clauses of Article 35 of the Accounting Standard for Retirement
Benefits and Article 67 of the Guidance on Accounting Standard for Retirement Benefits. The Company has
revised its calculation methods for retirement benefit obligations and service costs, and together with changing
its method for attributing projected retirement benefits to periods from the straight-line basis to the benefit
formula basis, also has revised its method for determining the discount rate, from a method based on thenumber of years approximate to the expected average remaining working lives of employees, to a method thatuses a single weighted average discount rate reflecting the estimated retirement benefit payment periods andamount per each estimated retirement benefit payment period.
To apply the Accounting Standard for Retirement Benefits, the Company has recognized the effect of thisrevision to its calculation methods for retirement benefit obligations and service costs by adjusting the balanceof retained earnings at the beginning of first quarter consolidated accounting period, in accordance with thetransitional provisions set forth in paragraph 37 of the Accounting Standard for Retirement Benefits.
As a result, net defined benefit assets increased by ¥725,010,000 yen, and retained earnings increased by¥466,457,000 yen, as of the beginning of the first quarter consolidated accounting period. The effect of this change
on first quarter consolidated accounting period earnings is not material.

43. Quarterly Consolidated Financial Statement(1) Quarterly Consolidated Balance Sheets (First Quarter)(Thousands of Yen)
End of Previous YearEnd of First Quarter(October. 31, 2014)(January 31, 2015)

AssetsCurrent Assets
Cash and Deposits

5,661,622

4,399,722

Notes and Accounts Receivable-Trade

14,321,437

14,568,456

Merchandise and Finished Goods

2,834,556

2,947,664

Work in Process

1,193,440

1,864,337

Raw Materials and Supplies

772,969

930,415

Deferred Tax Assets

579,233

451,282

Others225,244

275,926-5,251-3,91425,583,252

25,433,890

2,742,339

2,729,478

Accumulated Depreciation-1,533,884-1,519,690

Buildings and Structures, Net

1,208,455

1,209,788

Machinery, Equipment and Vehicles

4,045,863

3,990,984-3,346,731-3,296,381

699,131694,602930,711

931,769

Construction in progress

2,581,210

2,618,948

Others1,102,854

1,104,011

Accumulated Depreciation-977,538-980,625

Others, Net

125,316

123,3855,544,824

5,578,494

451,969

442,084

Investment Securities

1,255,543

1,348,098

Guarantee Deposits

243,293244,640

Net Defined Benefit Assets

596,943

1,336,491

Deferred Tax Assets

36,61636,487

Others

128,527

127,034

Allowance for Doubtful Accounts-22,995-22,689

Total Investments and Other Assets

2,237,928

3,070,061

Total Noncurrent Assets

8,234,723

9,090,640

Total Assets

33,817,976

34,524,531

Allowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net
Land

Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets5

(Thousands of Yen)
End of Previous YearEnd of First Quarter(October. 31, 2014)(January 31, 2015)

Liabilities and Net Assets
Liabilities
Current Liabilities

5,970,933

6,590,771

Accounts Payable-Others

535,396

641,586

Income Taxes Payable

543,046

40,879Advances Received

431,020

194,779

Provision for Bonuses

731,676

339,367

Provision for Directors' Bonuses

36,90014,575

Allowance for Product Warranty

223,618

221,425

Others

305,463354,691

8,778,056

8,398,076

Notes and Accounts Payable-Trade

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

18,6805,460

Net Defined Benefit Liabilities

48,64654,071

1,028,769

1,265,353

Total Noncurrent Liabilities

1,096,096

1,324,884

Total Liabilities

9,874,153

9,722,961

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410
21,267,920

1,483,410
21,893,357-363,591-363,591

Total Shareholders’ Equity

23,448,949

24,074,386

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges

305,484

363,236

1,272

353

Foreign Currency Translation Adjustment

311,609

485,086

Total Adjustment on Net Defined Benefit-123,493-121,492

Total Accumulated Other Comprehensive Income

494,873

727,183

Total Net Assets

23,943,822

24,801,569

Total Liabilities and Net Assets

33,817,976

34,524,531

Deferred Tax Liabilities

Net Assets
Shareholders’ Equity

Retained Earnings
Treasury Stock6

(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income (First Quarter)(Thousands of Yen)First Quarter Ended

First Quarter Ended

January 31, 2014

January 31, 2015

Net Sales

9,106,222

9,572,181

Cost of Sales

7,400,845

7,633,464

1,705,376

1,938,716

1,585,893

1,651,265

119,483

287,451

Interest Income

4,779

5,036

Dividends Income

107,879

9,540

Gross Profit
Selling, General and Administrative Expenses
Operating Income
Non-Operating Income

2,410

1,758

Foreign Exchange Gains

45,273

168,578

Others12,373

12,974

172,716

197,888

Interest Expenses

3,170

427

Commission Paid

756

756

Sales Discount

1,391

1,522

Others2,110

701

Total Non-Operating Expenses

7,428

Ordinary Income

284,770

3,407
481,932-

15,81458,962-58,962

15,814

Income before Income Taxes and Minority Interests

343,732

497,746

Income Taxes-Current

15,551

36,219

Income Taxes-Deferred

65,48778,031

81,038114,251

262,694

383,495

Minority Interests in Income or Loss (-)

-865

-

Net Income or Loss (-)

263,560

383,495

Rent Income

Total Non-Operating Income
Non-Operating Expenses

Extraordinary Income
Gain on Sales of Noncurrent Assets
Gain on Negative Goodwill
Total Extraordinary Income

Total Income Taxes
Income before Minority Interests

7

Quarterly Consolidated Statements of Comprehensive Income (First Quarter)(Thousands of Yen)First Quarter Ended

First Quarter Ended

January 31, 2014
262,694

January 31, 2015
383,495

30,53757,752

Deferred Gains or Losses (-) on Hedges

-775

-919

Foreign Currency Translation Adjustment

148,834

173,476-

2,000

178,595

232,310441,289

615,806

427,236

615,806

Income before Minority Interests
Other Comprehensive Income
Valuation Difference on Available-for-sale Securities

Net Defined Benefit
Total Other Comprehensive Income
Comprehensive Income(Breakdown)Comprehensive Income attributable to Owners of the
ParentComprehensive Income attributable to Minority
Interests

14,0528

(3) Notes on Quarterly Consolidated Financial Statements(Note for premise of going concern)
There are no pertinent matters to report.
(Notes for significant changes in shareholder’s equity)
There are no pertinent matters to report.
(Segment Information, etc.)
First Quarter Ended January 31, 2014
1 Information Pertaining to the Amount of Net Sales or Net Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

1,544,442

7,561,780

-

-

-

-

Total

1,544,442

7,561,780

9,106,222

9,106,222

Segment Profit or Loss (-)-137,877

257,360

119,483

119,483

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred

Total

Grand Total

9,106,222

9,106,222(Note) The total amount of segment profit is identical to the operating income reported on the Quarter Consolidated Statements of Income.

2 Information Concerning Impairment Loss on Noncurrent Assets, Goodwill, and Other Items by Reporting Segment(Material gain on negative goodwill)
The Tomoe Engineering Group had a gain on negative goodwill in the Chemical Products Business in conjunction withthe acquisition of the stock of Interstella Co., Ltd., a consolidated subsidiary of Tomoe Engineering, which was owned
by another company. The reported amount of the gain on negative goodwill in the consolidated First Quarter underreview as a result of this acquisition was 58,962,000 yen.

First Quarter Ended January 31, 2015
1 Information Pertaining to the Amount of Net Sales or Net Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred
Total
Segment Profit

Machinery & Equipment
Business

Chemical Products
Business

1,948,883

7,623,297

9,572,181

9,572,181

-

-

-

-

1,948,883

7,623,297

9,572,181

9,572,181

56,965

230,485

287,451

287,451

Total

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarter Consolidated Statements of Income.

9

4. Overseas Net Sales (Supplemental Information)
First Quarter Ended January 31, 2014

(Thousands of Yen)
Asia

I. Overseas Net Sales

Total

1,461,944

207,955

1,669,900--

9,106,222

16.1

2.3

18.3

II. Consolidated Net Sales
III. Ratio of Overseas Net Sales to Consolidated Net Sales (%)

Other Regions(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas:(1) Asia: China, Korea, Taiwan and Indonesia(2) Other regions: America and Europe
3. Overseas net sales are sales of our company and subsidiaries made in countries and regions other than Japan.
First Quarter Ended January 31, 2015

(Thousands of Yen)
Asia

I. Overseas Net Sales
II. Consolidated Net Sales
III. Ratio of Overseas Net Sales to Consolidated Net Sales (%)

Other Regions

Total

1,183,785

881,320

2,065,105--

9,572,181

12.4

9.2

21.6

(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas:(1) Asia: China, Korea, Taiwan and Indonesia(2) Other regions: America and Europe
3. Overseas net sales are sales of our company and subsidiaries made in countries and regions other than Japan.

10